Liquidity Bootstrapping is a technique used to enhance the availability and trading activity of a new token or project. It helps in establishing a liquid market for a new asset by gradually increasing its trading volume and market depth.Typically, this process involves creating an initial liquidity pool where participants can buy and sell the token. To attract early investors, the price might start high and gradually decrease over time, allowing users to enter at lower prices as liquidity builds. This encourages participation and trading, fostering a more active market.Over a defined period, the token’s price continues to drop, incentivizing users to provide liquidity by making them believe that buying at lower prices is advantageous. As demand grows, it ultimately leads to a stable market environment where trading becomes easier and more reliable.Liquidity Bootstrapping aims to reduce price volatility and manipulation during a project’s initial phase, creating a healthier trading ecosystem that benefits both the project and its investors in the long run.